“Our cyclical asset allocation view is to prioritize diversification in order to guard against the increasing uncertainty of outcomes and potential pickup in volatility that we expect during the course of 2018,” according to Fidelity.
Consequently, investors who are looking into international equities may consider more defensive or even value-oriented ETF plays as a means to diversify and diminish downside risks. For example, Fidelity recently rolled out the Fidelity International High Dividend ETF (NYSEArca: FIDI) and Fidelity International Value Factor ETF (NYSEArca: FIVA).
The International High Dividend ETF tries to reflect the performance of the Fidelity International High Dividend Index, which is designed to reflect the performance of stocks of large- and mid-cap developed international high dividend-paying companies that are expected to continue to pay and grow their dividends.
The International Value Factor ETF tries to reflect the performance of the Fidelity International Value Factor Index, which is designed to reflect the performance of stocks of large- and mid-cap developed international companies that have attractive valuations.
For more information on the latest happenings in the ETF industry, visit our Current Affairs category.